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When a court enters an order of relief when a bankruptcy
charge is filed. It is very painful to sing for the facility but sometime it is
inevitable.

The first sign is when your credit card balance is at its
limit. Others include zero savings, inability to earn enough to pay down debt.
More are when you forgo necessary items or take loans against you retirement
account.

A bad sign is when you use your life insurance to stay
current debt, are not credit worthy or you rob Peter to pay Paul. Another sure
sign is when your account goes negative during the month, you are behind on
home/vehicle payments and debt collector comes calling. . Here 10 signs you are
heading for bankruptcy.

Signs
of impending Bankruptcy

•Credit
card balance is at its limit

•Zero
savings

•Inability
to earn enough to pay down debt

•When you
forgo necessary items

•Take loans
against you retirement account.

•When you
use your life insurance to stay current debt

•Not credit
worthy

•Rob Peter
to pay Paul

•When your
account goes negative during the month

•Behind on
home/vehicle payments

•Debt
collector comes calling

1.Creditors
Rage

A sure sign you are heading for bankruptcy is when
creditors come calling, sue or send letters. This is a bad sign because it
means you have defaulted far enough to be labeled bad debt.

The lenders send debt collectors in a vicious and
persistent cycle to collect the loan. The creditors result to harassment,
intimidation and levies. The final assault would end in court.

2. You
are behind on home loans

You know you are heading for bankruptcy when you get
behind on home loans. Home loans are lifetime investment and a place to live.
Mortgage default is a serious indication of impending trouble.

3. You
are behind on vehicle loan

Getting behind on vehicle loan is not that terrible
except if it is commercial vehicle and your source of livelihood. The car
becomes a priority and default has dire consequences.

4. Negative
bank account

If your bank account goes negative during the month you
are in trouble. Bouncing payments before next paycheck is bad.

This is a sure indicator of overspending, bad planning
and bankruptcy. If the trend is not checked you are advancing towards total
penury.

5. Incessant Borrowing

I know an individual who makes good earnings yet is
always broke. This is because of huge expenses spent on his large family and
outstanding debts. The person borrows from one source and pays to the other.

Robbing Peter to pay Paul is a very bad strategy. The
individual has serious cash flow problems. Taking from one creditor to cover
some bills and paying another is very bad economics.

6. Creditors
refuse to approve loans

You are heading for trouble when creditors see your debt
and determine that the odds of paying back is remote.

If your overall debt load is high, creditor see you as a
risk. This might occur despite balancing payment, you are refused loan
approval.

7. Using
life insurance and retirement account

Having a life insurance or retirement account is to
facilitate a source of income in your old age. But if you find yourself taking
out loans against insurance policy or retirement account to service a loan you
are in trouble.

Large monthly payments are automatically deducted from
your paycheck to service retirement account loans. Using this will provide
added problems of large retirement account loan payments.

8. Foregoing
necessary items

When you find yourself forgoing necessary items like
toothpaste, soap, foodstuff you are in trouble. If you can’t maintain your
vehicle or pay health insurance that is a bad sign.

Skipping basic necessities to keep up debt payments is a
sure sign you are heading for bankruptcy.

9. Low
earning

If you are unable to earn enough to keep up with your
debts you are in trouble. If the minimum cost to maintain the balance on your
credit card is lacking bad omen. Some people work two to three jobs or overtime
yet the debt persists.

10. Poor
saving culture

Saving is a good way to keep some money for the rainy
day. You earn low interest and gradually increase the account.

If you have no way to save each month your finances is in
trouble. A sure sign of bankruptcy is when your debt gobble up your earning
leaving no room to save